Strategy for BTC accumulation creates higher return on investment (ROI) when using the Crypto Fear & Greed Index to dictate a dollar-cost averaging (DCA) strategy compared to a “vanilla” DCA strategy.
🥇 DCA - Dollar Cost Average
Our strategy involves DCA’ing $100,000 into Bitcoin once a week, starting from March 17, 2020, to Sept. 9, 2023, which netted a 124.8% ROI.
💲F&G NO SELL - Tiered Dollar Cost Average
The second strategy involves a tiered DCA plan, which would buy $15,000 of Bitcoin each week during times of “extreme fear,” $10,000 if in “fear,” $7,500 if in “neutral,” $5,000 if in “greed” and $2,500 if in “extreme greed.”
💲F&G WITH SELL - Advanced Tiered Dollar Cost Average
The third strategy is the same, except it would sell 5% of the accumulated Bitcoin each week if in the “extreme greed” zone. This tis the most profitable strategy, with an 184.2% ROI, compared to the benchmark of 124.8% and the no-selling strategy of 140.1%.
💲PI Cycle Top Indicator
Produced ROIs of 332.4%.
💲AlphaSquared Risk Model DCA
Produced ROIs of 385%
Results of five-part test measuring BTC’s ROI with various trading strategies.
